India and Thailand have witnessed a significant uptick in travel between the two countries. According to data from the Directorate General of Civil Aviation (DGCA), the April-June quarter of this year saw a record 11.6 lakh passengers traveling between India and Thailand via direct flights. This surge is reflective of Thailand’s growing appeal among Indian tourists.
Visa-Free Regime Boosts Tourism
Thailand, known for its tourism-driven economy, introduced a visa-free policy for Indian nationals effective November 10, 2023, initially until May 2024. This policy has since been extended until November 11, 2024. The move comes in response to the slow recovery of China’s outbound tourism, which traditionally contributed significantly to Thailand’s tourist numbers. With Malaysia also offering visa-free travel and Indian airlines expanding routes to Central Asia, Indian travelers now have more options than ever.
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Indian Tourist Numbers on the Rise
For Indian travelers, Thailand represents a favored holiday destination due to its proximity, vibrant nightlife, and affordability. Although data for 2024 is still pending, 1.62 million Indians visited Thailand last year, a decline from the pre-COVID figure of 1.9 million in 2019. However, the first half of this year has already seen 1.04 million Indian tourists, suggesting that the 2019 numbers may soon be surpassed. India now ranks as the fourth-largest source market for tourism in Thailand, behind Malaysia, China, and South Korea.
Aviation Sector’s Response to Increased Demand
The aviation sector has responded robustly to the rising demand. According to exclusive data from Cirium, airlines have increased weekly frequencies between India and Thailand by 81 compared to last November. By November this year, there will be 355 weekly flights, offering 64,880 seats each way.
The connectivity between the two countries spans 16 airports in India and three in Thailand. Indian carriers are scheduled to operate 145 weekly frequencies, while Thai carriers will manage 185 weekly frequencies. The seat distribution includes 25,694 weekly seats by Indian carriers and 38,950 by Thai carriers. The top three carriers in this sector are Thai Airways, IndiGo, and Thai AirAsia.
New Flight Routes and Expansions
Air India has launched flights to Phuket this year, catering not only to Indian nationals but also to European travelers with a short layover in Delhi. Speculation persists about potential new destinations in Thailand being added by Indian carriers. Nok Air has also announced new flights to Mumbai for this winter. While SpiceJet holds rights for additional flights, its current financial challenges have limited its operational capacity. Go FIRST, which ceased operations in May last year, previously had a notable presence in Thailand.
Small Hubs and Connecting Traffic
Air India’s expansion has resulted in more connecting traffic via Delhi. Thai carriers like Thai AirAsia and Thai Airways are also leveraging Indian traffic to feed into their networks serving destinations in America, Japan, Australia, Indonesia, and China. Notably, both Thai Airways and Air India are members of the Star Alliance.
Future Outlook and Competitive Dynamics
The rivalry between India and China is notable in the tourism sector. Despite the increase in Indian tourists, the frequency of flights between Thailand and China remains three times higher than that between Thailand and India. Nevertheless, the natural beauty, street food, nightlife, and ease of access make Thailand an attractive destination for Indian tourists.
Looking ahead, the visa-free regime is expected to be extended beyond November, further boosting tourism. This will likely benefit airlines, with the primary market remaining predominantly Indian.
